Connecticut Woman Charged with Embezzlement, Fraud, and Identity Theft from Healthcare Corporation
A former employee of a Connecticut healthcare corporation operating several nursing and rehabilitation facilities was arrested on a federal criminal complaint in which she was charged with multiple embezzlement, fraud, and identity theft. After appearing before a U.S. Magistrate Judge, the woman was released on a $200,000 bond.
According to the criminal complaint, the woman worked in the corporation’s business office and was responsible for processing payroll and handling the residents’ trust accounts. It is estimated that between January and October 2018, the woman embezzled about $150,000 from the residents’ trust accounts. Additionally, she stole more than $29,000 from the corporation in the form of payroll checks that she deposited into her personal bank account.
After being terminated by the healthcare corporation in October 2018, the woman defrauded another employer of more than $9,000. She also defrauded multiple banks in an identity theft and check kiting scheme.
If convicted, the woman faces possible imprisonment of various lengths ranging from a mandatory 2 years for aggravated identity theft to up to 10 years for healthcare fraud, 20 years for wire fraud, and 30 years for bank fraud.
Compliance Perspective
Failure of a healthcare provider to incorporate the checks and balances intended to prevent embezzlement and fraud required by Generally Accepted Accounting Principles into the oversight of the residents’ trust accounts may be considered a violation of residents’ rights to have their personal funds protected and managed. Ultimately, it may be deemed provision of substandard quality of care, in violation of state and federal regulations.
Discussion Points:
- Review policies and procedures that incorporate the business office checks and balances needed to separate duties of staff and prevent potential embezzlement and fraud.
- Train business office staff about protocols involving separation of duties when handling residents’ trust accounts (two-person verification of deposits and withdrawals) and reporting of any suspected incident involving theft/embezzlement to a supervisor or through the Hotline.
- Periodically audit the deposits and withdrawals from residents’ trust accounts to determine if two-person protocols are being observed.
